Labour to force non-binding Commons vote on scrapping leaseholds

1 year ago 21
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FlatsImage source, Getty Images

By Kate Whannel

Political reporter, BBC News

Labour will force a non-binding vote on abolishing the leasehold system in England and Wales in the House of Commons on Tuesday.

Housing Secretary Michael Gove had previously promised to scrap the system whereby the owner of a property pays maintenance charges and ground rent.

But the government's plans for leaseholds, due this year, will not include a date for ditching the system.

Labour's Lisa Nandy said the lack of a timetable was "a scandal".

The shadow housing secretary said: "We cannot have more delays or broken promises because of rows within government.

A statement from the Department of Housing said: "We remain determined in our promise to better protect and empower leaseholders to challenge unreasonable costs and make it easier and cheaper for them to extend their lease or buy their freehold.

"These build on the significant improvements we have already made to the market - including ending ground rents for most new residential leases."

Unlike a freeholder who owns a property and the land it is built on outright, a leaseholder owns a lease which gives them the right to use the property.

They have to get permission to make changes to the home and sometimes must pay expensive ground rent.

Leaseholders can also be subject to expensive legal fees if they want to extend their lease.

Around 20% of homes in England are leasehold properties, many of them flats in cities.

Mr Gove has long been critical of the leasehold system describing it as unfair and outdated.

In January he said the government would "absolutely" fulfil the pledge to abolish it that legislation would be brought forward "shortly".

Legislation is planned to be introduced in the autumn, however it will not implement a ban, instead introducing protections for tenants from ground rents and legal fees.

It is also expected to bring forward reforms that will make the leasehold system less attractive, and lay the groundwork for a viable commonhold system.

A commonhold system would mean occupants jointly own and take responsibility for their buildings without an expiring lease.

Labour's motion, to be debated on Tuesday, would compel the government to introduce a "workable system to replace private leasehold flats with commonhold".

It also says the government must end the sale of new private leasehold houses.

Labour has also called for residents to get greater powers over the management of their homes in the interim and introduce a crackdown on unfair fees.

Ms Nandy said: "MPs from all parties can join Labour in voting to end the leasehold system, implement the Law Commission's recommendations in full, and deliver long-overdue justice to millions of families."

Even if MPs back Labour's motion, leaseholds will not be automatically abolished as the vote is non-binding on the government.

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